Scammers are constantly looking for new ways to part you from your hard-earned cash. That’s why staying a few steps ahead is so important when protecting your money. Losing money to fraud can have a big effect on someone’s life – it can be draining for your mental health and wellbeing, as much as your financial circumstances. So, stay a step ahead of scammers by being aware of their common tactics and taking some simple measures to keep your money safe. Australians lost more than $2 billion to scams in 2024. While investment scams contributed the lion’s share of that, at $945 million, the good news is that it was 27% less than the previous year, so the trend is heading in the right direction*.
New types of scams emerge regularly
Investment scams may have resulted in significant total losses. Still, other common types of fraudulent activity include romance scams, payment redirection, remote access, and phishing, where a scammer sends messages pretending to be from a reputable firm or a government service to obtain personal information.
Scams involving crypto ATMS, SIM swapping and compromised business email addresses have also increased recently. Here’s what to look out for.
- Crypto ATMs: know where your money is going
More than 1,100 crypto ATMS in Australia allow people to buy or sell cryptocurrencies, such as Bitcoin, using cash or debit cards. Reports of crypto ATMS being used to transfer funds to scammers have risen internationally and in Australia in recent years, with older investors three times more likely to be affected. In many cases, the scammer impersonates a government or business. The intended victim may receive a code to deposit funds into a Bitcoin wallet. However, crypto ATMS don’t offer a way to verify who that wallet belongs to, leaving people vulnerable to making deposits into a fraudulent account.Cryptocurrency transactions cannot be reversed, so if you’re using a crypto ATM to buy or deposit cryptocurrency, use an address or account you control.
- SIM swapping: watch for sudden loss of network
SIM swapping may involve a scammer tricking a mobile phone carrier into believing the intended victim has lost their phone. Suppose the mobile carrier transfers the personal information associated with that person’s SIM card to a new number. In that case, this gives the scammer access to text messages that may enable them to access one-time PIN codes sent by SMS to verify the victim’s identity. Signs of SIM jacking include a sudden loss of access to the network, for example, when an SOS message appears at the top of your screen, a phone that stops working or receiving a message stating a mobile number is about to be swapped to a new one.Setting up a special PIN with your mobile carrier may help avoid unauthorised SIM swapping.
- Business email compromise scams: impersonating real emails
In these scams, criminals impersonate legitimate businesses. They send fraudulent emails to trick victims into transferring funds to scammers’ bank accounts. They may alter email addresses to resemble legitimate ones closely or use compromised accounts to make the messages look authentic.Property and real estate transactions may involve inserting false bank details for settlement payments, causing victims to transfer money to the wrong account unknowingly.
Ten ways to guard against fraud
There will always be scammers out there, but just as you might lock your front door when leaving the house, here are some simple measures you can take to help keep their sticky fingers off your finances in 2025.
There will always be scammers, but just as you might lock your front door when leaving the house, here are some simple measures to help keep their sticky fingers off your finances in 2025.
1.Update your sensitive passwords regularly
Ensure that the passwords for your MyGov, bank, and email accounts are strong and unique, and change them at least every three months.
2. Enable multi-factor authentication
Multi-factor authentication strengthens security by requiring you to verify your identity through multiple methods, which may include something you know (like a password), something you have (like a phone or hardware token) and something you are (like a fingerprint or facial recognition). This makes it much harder for scammers to gain access to your money.
3. Conduct a digital cleanse
Remove old or sensitive files and emails from your computer and email accounts regularly so that unauthorised users can’t access the information.
4. Install a password manager
A password manager securely stores your passwords and can generate strong, unique passwords for each account.
5. Install Internet security apps
Protect your mobile and computer with Internet security apps, such as anti-malware and antivirus software, which can detect and block malicious activities.
6. Guard against physical access
Shred any personal documents you no longer need and secure your mailbox with a lock to stop identity thieves from accessing sensitive information in discarded documents or stolen mail.
7. Sign up for a credit bureau
Monitoring your credit profile can help you spot signs of identity theft early. Consider placing a freeze or proactive alert on your profile to prevent fraudsters from opening accounts in your name.
8. Avoid clicking on links
Always manually enter business websites and phone numbers from their official websites to reduce your risk of falling victim to phishing scams.
9. Pause before you act
Take a moment to verify the legitimacy of any urgent requests. Use the Australian Securities and Investment Commission (ASIC) scam register or Scamwatch to check if you could be the target of a known scam. Scammers often use urgency to pressure people into making hasty decisions.
10. Don’t offer easy access
Public Wi-Fi networks are often insecure, so don’t use them for sensitive transactions. Always log out of browser windows on your devices when you are finished.
Following these tips can help you outwit online scammers and provide peace of mind that you’re taking every reasonable step to safeguard your savings and investments.
* Targeting scams. Report of the National Anti-Scam Centre on scams data and activity 2024.
^ Monthly Intelligence Report, National Anti-Scam Centre, August 2024.
Source: Colonial First State
